● MONDAY, March 31
Volume of natural gas purchased by Moldova in 2013 for first time lower
From 2010 until 2012 inclusive, Moldova annually raised the volume of natural gas bought. In money terms, the rise was about 1 billion lei. However, in 2013 Moldova paid for gas by about 300 million lei less, reducing the purchased volume. Experts of Moldovagaz said the volume of bought gas depends on the demand and the purchasing power of end-users. According to reports compiled by the National Agency for Energy Regulation, in 2010 Moldova bought natural gas to the value of 3.6 billion lei, paying over 3,000 lei for 1,000 m3. In 2011, the bought volume of gas came to 4.6 billion lei, the price being almost 4,000 lei per 1,000 m3. In 2012, the figure was nearly 5.2 billion lei, 1,000 cubic meters of gas costing 4,733 lei, while last year – 4.9 billion lei and the price was 4.773 lei. In the four years covered, between 80% and 93% of the money spent on gas was transferred to Russia’s Gazprom.
“Franzeluta” launches new bread making line
The bakery complex “Franzeluta” SA, in which the state owns a 52% holding, has launched a modernized bread production line. Representatives of the company say the new line will bring increased quality and profit. The equipment has a capacity of 28 tonnes of bread in 24 hours. The bread will include iodised salt and flower fortified with iron and folic acid, while the artificial additives will be excluded. The bread will be more porous, while the crust will be thinner. The company took out a loan from a national bank in order to modernize the line presented on March 31, for two lines that were launched earlier and for another three lines that will be assembled in the near future. The new equipment was brought from Italy, Slovenia, Slovakia, and Germany. “Currently, we make 30 types of bread and will soon make another five types. We will continuously make changes and I think it is the case. “Franzeluta” has worked for 67 years, but not many investments were made in it,” the company’s director general Victor Cojocaru said in the launch.
State Tax Service launches Taxpayer’s Current Account
The information about the fiscal obligations of taxpayers will be available online through the agency of a new electronic service called Taxpayer’s Current Account. The service was launched by the State Tax Service on March 31. State Main Tax Inspectorate head Ion Prisacaru told a news conference that both private individuals and legal entities carrying out entrepreneurial activities and people-taxpayers will be able to see this information without needing to go to the local tax offices, using a computer connected to the Internet. “This way, we hope to increase the voluntary compliance among taxpayers so that they correctly and timely fulfill their fiscal obligations,” he stated. The new service is available free on the website servicii.fisc.md and is accessible to holders of electronic signature or after the signing of the contract for connection to electronic services.
● TUESDAY, April 1
Import price of electricity will be slightly lower
After several rounds of negotiations held with Ukraine’s DTEC Vostokenergo and the Cuchurgan Power Plant situated in Transnistria, Moldova obtained a slight reduction in the purchase price of electric power in 2014, the Ministry of Economy has announced. Thus, the import price of electricity will be 6.8 cents per kWh, as against 6.9 cents until March 31, when the old contract for the supply of power expired. During the negotiations that lasted for over three months, the state-run company Energocom asked for a price of 6.0 cents per kWh. But the maneuvering space reduced owing to factors that affected first of all Ukraine. Thus, from April 1, the Russian gas supplied to Ukraine will be more expensive. The Ukrainian Government also announced that the rent for using natural resources will be twice higher and an ecological tax of 1% will be introduced on the use of natural gas. The electricity charges in Ukraine are also expected to be raised in 2014.
Mpay electronic service for carriers launched
The Ministry of Transport and Road Infrastructure on April 1 launched the electronic service Mpay that is designed for carriers. The service allows paying for the authorizations issued by the National Agency for Road Transport by several methods, such as bank cards, payment terminals, e-banking systems and in cash. Minister of Transport Vasile Botnari said the service is an instrument for reducing bureaucracy. In several months, the applicants will be able to ask for authorizations online. Vladimir Florea, head of the International Association of Road Haulers of Moldova, said the carriers have long waited for this service and for the “E-authorization” service as they reduce the time spent queuing up at offices and transferring money.
● WEDNESDAY, April 2
Stricter rules for retail outlets situated near and inside apartment buildings
The retail outlets located at a distance of up to 50 meters from apartment buildings or inside them will be banned from working between 9am and 9pm if they do not meet the phonic pollution norms. Such a proposal was put forward by the Ministry of Economy. If the retail outlet is situated inside the apartment building, the economic entity will be obliged to get the neighbors’ consent for working. The consent must be obtained from persons who own the realty when the authorization is issued and who meet at least one of the following conditions: have a common wall with the retail outlet, their apartment is located on the first three stories above or under the shop, within its limits, or on the same floor and staircase with the shop. The signatures of neighbors must be authenticated by a notary.
Südzucker Moldova” sustained losses of millions of lei
The sales of SA “Südzucker Moldova” last year were about 960 million lei, a decrease of 50 million lei on a year before. The gross profit from sales was by 90 million lei lower than in 2012. Consequently, for the first time in the last five years the company sustained losses of 4.9 million lei. The company’s Management Committee said such a state of affairs was mainly due to the rise in the VAT on sugar from 8% to 20% last year, which favored the illegal importation of sugar from Ukraine into Moldova. As a result, the sugar prices on the domestic market and, respectively, the sales of national producers decreased, it is said in a communiqué from “Südzucker Moldova”.
● THURSDAY, April 3
Moldova will take out loan to modernize heath system
The International Development Association will offer Moldova 20 million Special Drawing Rights, equal to US$30.9 million, for financing the Health System Modernization Project. The Government set up a group of negotiators for the talks, headed by Minister of Health Andrei Usatyi. The loan will have a technical assistance component of about US$2.9 million. The goal of the project is to assist Moldova in reducing the risks factors for non-transmitted diseases, improving the financial protection and in increasing the efficiency of heath services.
Economic risks faced by Moldova in 2014 are generated by regional situation, report
The economic development of Moldova this year can be affected by the uncertain regional situation deriving from the problems that arose between Russia and Ukraine, which are important trade partners of Moldova, said World Bank economists who made a study of the economic growth in Moldova in 2013 and the main challenges for this year. Senior economist Ruslan Piontkisky and economist Marcel Chistruga said Moldova’s economy in 2013 reached a record GDP growth of 8.9% owing to the good harvest and the higher private consumption fueled by remittances and pay raises. According to the co-authors of the study, the macroeconomic polices of Moldova were appropriate, while the monetary policies met the inflation target of 5%. Remittances reached a record level in 2013, owing mainly to the money sent from the CIS countries. At the beginning of this year, remittances declined following the slowdown in the economic activity in Russia.
Substantial holdings in registered capital of banks will be reduced
The substantial holdings in the registered capital of banks that enable to exert considerable influence on the management or activity will be decreased from 5% to 1%. A bill to this effect was approved by the Government following discussions with the National Committee for Financial Stability. The permission of the National Bank will be required for acquiring holdings of 1%. Minister of Justice Oleg Efrim said the given decision will enable the supervising authority to intervene on time and will help the central bank to follow the changes in the structure of the commercial banks. Under the bill, the person who made a purchase without obtaining the permission of the National Bank beforehand will be unable to acquire other holdings in the registered capital of banks. The pledging of bank shares is banned in a move to avoid the non-transparent change of shareholders. Penalties consisting in fines and imprisonment will be introduced for causing damage to the financial institutions.
Purchase of “Donaris” group finalized
Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) purchased 94% of the shares of the Insurance – Reinsurance Company “Donaris Group” SA based in Moldova. The transaction was finalized after obtaining the official approvals. Founded in 1998, “Donaris” operates on the non-life insurance segment. In 2013, it registered premiums to the value of about 100 million lei (approximately €5.4m), an increase of roughly 8% compared with last year. About 80% of the premiums were generated by the car insurance segment. With a market share of 8.4% in 2012, “Donaris” ranks fourth on the non-life insurance segment of Moldova.
Expert-Grup” forecasts economic growth of 2.1% for this year
The economic growth of 8.9% recorded in 2013 must be treated with precaution. It was due to the recovery of agriculture following the drought of 2012, the relaxed monetary policy and depreciation of the national currency, it is said in the publication MEGA that was presented by the think tank “Expert-Grup” in a news conference. Analysts consider it will be hard to repeat this performance this year. They project that the economic growth in 2014 will be 2.1%, or even 0.5% in case of a pessimistic scenario. Among the persisting risks, “Expert-Grup” underlines the worsening of the economic situation in the CIS, to which a large part of Moldova’s exports go. Russia didn’t lift the ban on wine imports and may impose restrictions on other products too, especially fruit and vegetables. The foreign investors will avoid the region in the wake of the developments in Ukraine. There are a number of internal risks, such as the imperfect competition framework, monopolization of the market, poor protection of ownership rights, low level of confidence of creditors in the construction sector, etc.
● FRIDAY, April 4
58 new businesses will receive grants within PARE 1+1 Program
The Supervisory Committee of the PARE 1+1 Program approved financing for 58 investment projects to the value of 11.3 million lei. The Ministry of Economy informs that the Moldovan migrants who returned home or their first-degree relatives can benefit from grants of 200,000 lei if they invest at least 200,000 lei in a business. In a communiqué, the Ministry says that the investments attracted from the migrants in the first quarter of this year came to 49.5 million lei. Thus, 1 leu invested by the state generates private investments of 4.4 lei. A number of 58 applications for financing have been submitted following the current call. 61% of the applicants are younger than 35, while 20% are women.
● SATURDAY, April 5
Interest in electronic export statements increases
The electronic clearance procedure launched last November becomes more popular. In a news conference, director general of the Customs Service Tutor Balitski said the electronic statements on export can be presented to all the customs offices of the country. “Having a digital signature and being connected to the customs information system, the economic entity can submit the export statement in about 7 minutes, at over twice lower costs. With e-Customs, the procedure becomes transparent. The direct contact between the exporting economic entity and the customs officials is eliminated, the corruption risks being minimized,” said Tutor Balitski. According to him, the number of companies that present export statements in electronic format in March increased considerably compared with last yearend. The Customs Service intends to extend the electronic customs procedures. In this respect, a number of informative meetings with representatives of businesses will be held in Apri
